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    ABG Shipyard

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    Tripti Navani
    CARE has reaffirmed the financial strength grading of ABG Shipyard Ltd at grade 4. While the grading considers ABG's experienced management and strong order backlog, it is constrained by the subdued shipping industry, payment delays from customers, and high working capital usage. Maintaining delivery timelines, managing the operating cycle, and reducing financial leverage will be key for ABG.

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    ABG Shipyard

    Uploaded by

    Tripti Navani
    95 views2 pages
    CARE has reaffirmed the financial strength grading of ABG Shipyard Ltd at grade 4. While the grading considers ABG's experienced management and strong order backlog, it is constrained by the subdued shipping industry, payment delays from customers, and high working capital usage. Maintaining delivery timelines, managing the operating cycle, and reducing financial leverage will be key for ABG.

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    CARE has reaffirmed the financial strength grading of ABG Shipyard Ltd at grade 4. While the grading considers ABG's experienced management and strong order backlog, it is constrained by the subdued shipping industry, payment delays from customers, and high working capital usage. Maintaining delivery timelines, managing the operating cycle, and reducing financial leverage will be key for ABG.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    95 views2 pages

    ABG Shipyard

    Uploaded by

    Tripti Navani
    CARE has reaffirmed the financial strength grading of ABG Shipyard Ltd at grade 4. While the grading considers ABG's experienced management and strong order backlog, it is constrained by the subdued shipping industry, payment delays from customers, and high working capital usage. Maintaining delivery timelines, managing the operating cycle, and reducing financial leverage will be key for ABG.

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    Press Release

    January 11, 2013 CARE REAFFIRMS THE FINANCIAL STRENGTH GRADING OF ABG SHIPYARD LTD Grading Assigned Grading Financial Strength Grading

    Ratings1 Grade 4

    Remarks Reaffirmed

    Grading Rationale The grading continues to derive strength from the experienced management and the growing operations of ABG Shipyard Limited (ASL) backed by strong and diversified order book further providing revenue visibility and back-to-back arrangements for raw material sourcing. However, the grading continues to be constrained by on-going subdued shipping industry leading to postponement of deliveries of vessels, delays in the payments from the customers as well as receipt of shipyard subsidy resulting in high level of working capital utilization, consequent moderation of liquidity profile and deterioration in the financial leverage. Significant amount of corporate guarantees provided to the group companies and stiff competition from global players in the scenario of slowdown in the shipbuilding activity further constrain the rating. The ability of ASL to meet the delivery timelines for its order book, prudently manage its operating cycle and prune down financial leverage remains the key grading sensitivities. Company Profile ABG Shipyard Limited (ASL), with its facilities in Surat and Dahej, is engaged in construction and repair of various types of vessel and drilling rigs. As on October 30, 2012, the unexecuted orderbook of ASL stood at around Rs.9,000 crore. During FY12 (refers to the period April 1 to March 31), ASL posted a total income of Rs.2,431 crore and PAT of Rs.180 crore as against the total income of Rs.2,104 crore and PAT of Rs.189 crore during FY11. During H1FY13, the operating income of the company was Rs.1,213 crore and PAT was Rs.74 crore compared with Rs.1,108 crore and Rs.88 crore, respectively, in H1FY12. Analyst Contact Name: Mahendra Patil Tel # 022-67543443 Mobile # 9920145989 Email: Mahendra.patil@careratings.com

    CARE has classified instruments rated by it on the basis of complexity. This classification is CARE Investors/market available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to care@careratings.com for any clarifications.
    Disclaimer CAREs Financial Strength Gradings are opinion on financial strength of the graded entity and are not recommendations to enter into any business transactions, sanction, renew, disburse or recall any debt /bank facilities or to buy, sell or hold any security of the graded entity. CARE has based its Financial Strength Gradings on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose financial strengths are graded by CARE have paid a Grading fee. Complete definitions of the grading assigned are available at www.careratings.com and in other CARE publications.
    Credit Analysis & Research Ltd., 4th Floor, Godrej Coliseum, Somaiya Hospital Road Sion East, Mumbai 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457
    1

    Press Release

    CARE is headquartered in Mumbai, with Offices all over India. The office addresses and contact numbers are given below: HEAD OFFICE: MUMBAI Mr. D.R. Dogra Mr. Rajesh Mokashi Managing Director Dy. Managing Director Mobile : +91-98204 16002 Mobile +91-98204 16001 E-mail : dr.dogra@careratings.com E-mail: rajesh.mokashi@careratings.com Mr. Suryanarayan Iyer Rangaswamy Senior Vice President Marketing Mobile: +91 9867365827 mail: R Suryanarayan@careratings.com Mr.Ankur Sachdeva Vice President Banks & Financial Services Mobile: +91-9819698985 Email ankur.sachdeva@careratings.com

    CREDIT ANALYSIS & RESEARCH LTD HEAD OFFICE 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022 |Tel: +91-022- 6754 3456 | E-mail: care@careratings.com | Fax: +91-022- 6754 3457. KOLKATA | Ms. Priti Agarwal | Cell: +91-98319 67110 | Tel: +91-33- 4018 1600/ 1602 | E- mail: priti.agarwal@careratings.com | 3rd Flr., Prasad Chambers (Shagun Mall Bldg), 10A, Shakespeare Sarani, Kolkata -700 071 CHENNAI | Mr. V Pradeep Kumar | Cell: +91 9840754521 | Tel: +91-44-2849 7812/2849 0811 | Fax: +91-44-2849 0876 | Email: pradeep.kumar@careratings.com | Unit No. O-509/C, Spencer Plaza, 5th Floor, No. 769, Anna Salai, Chennai - 600 002 AHMEDABAD | Mr. Mehul Pandya | Cell: +91-98242 56265 | Tel: +91-79-40265656 | Fax: +91-7940265657 | E-mail:mehul.pandya@careratings.com | 32, Titanium, Prahaladnagar Corporate Road, Satellite, Ahmedabad - 380 015. NEW DELHI | Ms. Swati Agrawal | Cell: +91-98117 45677 | Tel: +91- 11- 2331 8701/ 2371 6199 | E-mail: swati.agrawal@careratings.com | 3rd Floor, B -47, Inner Circle, Near Plaza Cinema, Connaught Place, New Delhi - 110 001. BENGALURU BENGALURU | Mr. Dinesh Sharma | Cell: +91 9900041975| Tel: +91-80-22117140 | E-mail: dinesh.sharma@careratings.com | Unit No. 8, I floor, Commander's Place, No. 6, Raja Ram Mohan Roy Road, (Opp. P F Office), Richmond Circle, Bangalore - 560 025. Saikat HYDERABAD | Mr. Saikat Roy || Tel: +91-40-40102030 | E-mail: saikat..roy@careratings.com | 401, Ashoka Scintilla | 3-6-520, Himayat Nagar | Hyderabad 500 029. PUNE | Mr. Rahul Patni | Cell: +91-78754 33355 | Tel: +91-20- 4000 9000 | E-mail: rahul.patni@careratings.com | 9th Floor, Pride Kumar Senate, Plot No. 970, Bhamburda, Senapati Bapat Road, Shivaji Nagar, Pune - 411 015. JAIPUR| JAIPUR| Mr. Rahul Jain | Cell: +91-9314921496| Tel: +91-0141-4020213/14 | E-mail: rahul.jain@careratings.com |304, Pashupati Akshat Height, s Plot No. D-91, Madho Singh Road, Near Collectorate Circle, Bani Park , Jaipur 302016.

    Credit Analysis & Research Ltd., 4th Floor, Godrej Coliseum, Somaiya Hospital Road Sion East, Mumbai 400 022. INDIA Tel # 022 6754 3456 Fax # 6754 3457

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